Schumer praises Trump for killing Broadcom bid to buy Qualcomm

Sen. Chuck Schumer, D-N.Y., said the White House made the right call in killing Broadcom’s aggressive plan to buy Qualcomm.

“Let me say unequivocally, President Trump in addition to also his administration made the right decision on blocking Broadcom via taking over Qualcomm,” he said via the Senate floor Tuesday.

The Senate minority leader’s comments come after President Donald Trump ordered the companies to abandon the proposal in addition to also barred Broadcom’s 15 proposed candidates for Qualcomm’s board via standing for election. Trump said he had “credible evidence” which the deal had the potential to threaten the national security of the United States.

Broadcom has repeatedly said which the item disagrees which its bid to buy Qualcomm could present any kind of national security concern. The Singapore-based company had been optimistic which its plan to move its headquarters to the U.S. could save the deal.

Schumer called This kind of a “happy moment” in addition to also urged greater scrutiny of foreign entities which seek controlling stakes in American companies.

In particular, the brand new York Democrat called out China, saying the country has been “very smart” about trade. Schumer said which Beijing will be always looking for opportunities to “steal” American technology in addition to also innovation.

“When China attempts to steal our best technology by buying American companies, whether the item’s robotics or AI or chips — like here in Qualcomm — we ought to block the item,” Schumer said.

The Treasury Department’s Committee on Foreign Investment inside United States had raised concerns about Broadcom’s pursuit, which was unprecedented for a deal which hadn’t been formally announced or agreed to.

One of the committee’s concerns had been how the transaction could stymie U.S. progress in developing 5G wireless network technology. In its March 5 letter, CFIUS said the San Diego-based Qualcomm will be a “trusted” player inside nation’s telecommunications infrastructure.

“Having a well-known in addition to also trusted company hold the dominant role which Qualcomm does inside U.S. telecommunications infrastructure provides significant confidence inside integrity of such infrastructure as the item relates to national security,” the Treasury Department wrote to lawyers involved inside proposed deal.

With Broadcom’s reputation for slashing research spending, some had feared the resulting company could be less competitive inside race against China to dominate 5G innovation in addition to also development.

The Treasury Department said, “China could likely compete robustly to fill any void left by Qualcomm as a result of This kind of hostile takeover.” which “could have substantial negative national security consequences for the United States.”

— CNBC’s David Faber in addition to also Alex Sherman contributed to This kind of report.